🧾

VAT Calculator

Calculate VAT inclusive and exclusive prices for UK and European VAT rates

Calculation Type

Select whether you want to add VAT to a net price or remove VAT from a gross price

VAT Details

Select your preferred currency
%
Enter the VAT rate or click a preset
£
Enter the price before VAT

Quick Examples

Add UK VAT
£100 + 20% VAT
£120.00
Remove UK VAT
£120 - 20% VAT
£100.00
Add UK Reduced VAT
£50 + 5% VAT
£52.50
VAT Amount Only
VAT on £200 at 20%
£40.00
Click any example to load the values and see the calculation

VAT Calculation Result

🧾
Enter price and VAT rate to calculate
VAT calculation result will appear here

Price Breakdown

Understanding VAT

What is VAT?

Value Added Tax (VAT) is a consumption tax applied to goods and services at each stage of production and distribution. It's collected by businesses on behalf of the government.

UK VAT Rates

  • Standard Rate (20%): Most goods and services
  • Reduced Rate (5%): Energy bills, children's car seats
  • Zero Rate (0%): Food, books, children's clothes
  • Exempt: Insurance, education, health services

VAT Formulas

  • Add VAT: Net Price × (1 + VAT Rate/100)
  • Remove VAT: Gross Price ÷ (1 + VAT Rate/100)
  • VAT Amount: Net Price × (VAT Rate/100)

When to Use

  • Pricing: Converting between net and gross prices
  • Invoicing: Calculating VAT on invoices
  • Accounting: VAT return preparation
  • Shopping: Understanding true cost of items

European VAT Rates

  • Germany: 19% standard, 7% reduced
  • France: 20% standard, 5.5% reduced
  • Ireland: 23% standard, 13.5% reduced
  • Spain: 21% standard, 10% reduced
  • Italy: 22% standard, 10% reduced
  • Netherlands: 21% standard, 9% reduced

VAT Registration

  • UK Threshold: £85,000 annual turnover
  • Voluntary Registration: Even below threshold
  • Benefits: Reclaim VAT on business purchases
  • Obligations: Submit quarterly VAT returns

Common Mistakes

  • Wrong Rate: Using standard rate for zero-rated items
  • Calculation Error: Adding VAT to VAT-inclusive prices
  • Rounding: Rounding at wrong stage of calculation
  • Mixed Supplies: Applying single rate to mixed items

Business Tips

  • Clear Pricing: Always state if prices include VAT
  • Invoice Requirements: Show VAT separately on invoices
  • Record Keeping: Maintain proper VAT records
  • Digital Records: Use Making Tax Digital compliant software